Noritz lowered its full-year profit guidance on Thursday's disclosure date of 12 November, blaming its overseas business. In a revision notice for the year ending December 2026, the water heater maker cut its operating profit forecast to ¥2.8bn from ¥4.5bn, a reduction of 37.8% against its previous guidance.
The size of the cut
Revenue is now forecast at ¥208.0bn, down from ¥214.0bn, or 2.8% below the earlier forecast. Ordinary profit is guided at ¥3.2bn, down from ¥5.2bn, a 38.5% cut. The percentages compare the new forecast with the one Noritz published on 7 August 2026, not with last year's results.
For reference, the notice lists last year's results as revenue of ¥202.0bn, operating profit of ¥4.3bn and ordinary profit of ¥5.5bn.
Why overseas, and what stays put
Noritz said domestic business needs no change, leaving both its sales and operating profit plans there as they were. Overseas, a prolonged stagnation in China's property market has reduced housing-related demand, and sales there remain weak. Consolidated revenue, operating profit and ordinary profit are therefore expected to fall short of the earlier forecast.
The forecast for net income attributable to owners of the parent is unchanged at ¥8.6bn, and earnings per share are forecast at ¥188.21 against ¥188.07 before. The notice does not explain why net income holds while operating and ordinary profit fall.
The year-end dividend forecast stays at ¥47 per share, as announced on 10 February 2026. Noritz added that its forecasts rest on information available on the release date and may differ from outcomes.
For earlier coverage of the company, see Earlier Tokyo Brief coverage.